This project emerged as a pivotal endeavour for a prominent building company, centred around a property in the Suburbs destined for a complete rebuild. The company, faced with a $1.3 million existing home loan and an additional $1 million required for construction, encountered a critical funding shortfall.
Complications arose when the builder depleted their resources, halting progress on the project. Matters escalated when the building company breached their mortgage agreement with their current bank by demolishing the previous residence, despite having council approval. Unfortunately, the bank declined further funding due to concerns about the company’s profits not adequately covering liabilities, including personal obligations of the directors. This left the company in a challenging position, compounded by the reluctance of both primary and secondary funders to engage, exacerbated by a partially completed house lacking a roof.
However, amidst these hurdles, our sales Manager successfully identified a private funder willing to meticulously assess the project’s risks. Through a comprehensive due diligence process, the private funder recognised the project’s viability and gained approval from their investors. The building company’s exceptional track record in completing similar builds bolstered confidence.
The Private Lender took proactive measures by appointing their own Quantity Surveyor and valuer to oversee the project. Their evaluation confirmed the potential for a favourable return, and the Quantity Surveyor will supervise the facility’s drawdowns until completion, ensuring a structured and controlled progress.
This successful collaboration between the building company and the Private Lender promises a pathway to realise the project’s full potential, leveraging expertise, meticulous evaluation, and strategic oversight for a promising outcome.